Providing Liquidity
Pools are a way to provide liquidity, or the ability to trade, between two different tokens on Ubeswap. They allow you to get exposure to the price of two tokens while earning trading fees on your tokens.
Staking tokens in a pool gives you a token called a liquidity provider token, or LP token for short. These LP tokens are extremely useful, as they can be used to provide loan collateral, to earn rewards in a yield farming platform, and many other use cases.
First, connect a wallet that you want to supply liquidity from.
Next, choose the provider of your wallet. In this tutorial, we'll use a Ledger.
On this page, specify the pair you'd like to provide liquidity to. At the time of writing, the only pair that exists on the UI is Celo/cUSD.
Once you've picked the tokens you'd like to supply to the pool, enter the amount of tokens you'd like to provide.
You need an equal amount of tokens on both sides of the liquidity pool, so ensure that you have enough of each token. You can use Ubeswap to swap tokens for the token you don't have enough of.
Once you have enough of both tokens, you'll come to a screen where you can supply liquidity.
If you haven't sent either of the tokens to Ubeswap before, you will see an "Approve" button for one or two of the tokens. You must click "Approve" for each token before the "Supply" button shows up.
Note: Ubeswap currently doesn't have an option to allow you to specify an approval limit. If you want to ensure that your funds can never leave your wallet, it may be better to use a wallet specifically for Ubeswap.
After clicking the "Supply" button, you should come to a screen asking for you to confirm the amount of tokens being supplied. If everything looks good, click "Confirm Supply".
Clicking this button will give you a link to Blockscout, where you can view the status of your sent transaction.
If you're providing liquidity, you need to provide a 50:50 ratio of tokens to the pool. For example, if you're providing tokens to the UBE-mcEUR pool, you'll have to provide an equal value (in USD) of UBE and mcEUR tokens.
You can see your LP tokens either directly in certain Wallets or on Celo Explorer at https://explorer.celo.org/address/[YOUR_WALLET_ADDRESS]/tokens (put in your wallet address where it says [YOUR_WALLET_ADDRESS]). Or you can navigate to the pool tab and see LP tokens that aren't deposited in yield farms.
Last modified 1yr ago